Business Idea

Start A Gluten Free Bakery Business

About

Starting a gluten-free bakery business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell gluten free bakery, or selling gluten free bakery online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a gluten-free bakery business ➜

Key stats

market size
$5.6B
revenue (monthly)
$80K
starting costs
$61.9K
gross margin
56%
avg product price
$2
time to build
180 months
growth
Pay Per Click Advertising
business model
Software
time investment
Full time

About

Starting a gluten-free bakery business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell gluten free bakery, or selling gluten free bakery online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a gluten-free bakery business ➜

Key stats

market size
$5.6B
revenue (monthly)
$80K
starting costs
$61.9K
gross margin
56%
avg product price
$2

 

time to build
180 months
growth
Pay Per Click Advertising
business model
Software
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $66 $700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Food Business Expenses $2,125 $36,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,286
Total Startup Costs $10,002 $106,447

Successful Businesses

Business URL Rank
Bakery bakeryandsnacks.com #299,200
Katz Gluten Free katzglutenfree.com #369,757
ChipMonk Baking chipmonkbaking.com #777,130
gfco.org gfco.org #1,012,477
BeeFree Gluten-Free Bakery beefreegf.com #1,714,042
Sensitive Sweets Bakery sensitivesweets.com #1,904,757
Glutino glutino.com #2,129,672
Sami's Bakery samisbakery.com #2,157,908
Newgrains newgrains.com #2,325,190
Three Bakers threebakers.com #2,594,937
Almotti Gluten Free Italian Delicacies almotti.com #2,645,689

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a gluten-free bakery business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your gluten-free bakery business are typically around 56%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A gluten-free bakery business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the gluten-free bakery business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a gluten-free bakery business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a gluten-free bakery business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.